A $ 100,000 mortgage at current market rates of
3.7 % with a 36 month term and 300 month
amortization results in monthly payments of $ 510 and a balance at term maturity
of $ 92,253.
A higher than market mortgage rate of 6 %
would result in a payment that is $ 130
higher each month and a balance at term maturity that is also $ 2,013
higher. The present value of the differences in payments with this adverse financing is $ 6,226.
You would be WORSE OFF with the 6 %
mortgage by a Present Value of $ 6,226.